Windermere Takes Pride In Low Taxes

A Building Boom Has Fueled A Slight Budget Increase, But Property Taxes Remain The Same: The County's Lowest.

July 29, 1999|By Sandra Mathers of The Sentinel Staff

WINDERMERE - An unprecedented building boom in this tiny upscale town on the shores of the Butler Lake Chain is adding millions of dollars to the town's tax base.

But that doesn't mean the town is afloat in cash.

Although property values in this mostly residential community rose by $9.5 million this year - for a total of $186 million - the extra property taxes generated by the increase will bring the town just $23,000. That's hardly a windfall for a town that has just started working on next year's proposed budget of $1.3 million.

The property tax gain is small because Winder- mere - whose 1,782 residents live in some of the most expensive homes in Orange County, some topping the million-dollar mark - has the lowest tax rate in the county.

Windermere Mayor Karen Ruenheck said the town isn't competing for the lowest tax rate. It's just a byproduct of sound financial management.

``We're not aware of where other [cities) are,'' Ruenheck said. ``We're aware of our spending. We address responsibly all the needs of our town and try to keep taxes reasonable.''

And they are. For instance, Windermere residents pay just $2.40 per $1,000 of taxable property value, compared with Edgewood residents, who pay $3.40 per $1,000. Edgewood, which has the second lowest tax rate in the county, is about the same size as Windermere.

Eatonville and Orlando have the county's highest tax rates, at $7.30 and $5 per $1,000, respectively.

The owner of a $100,000 house with a $25,000 homestead exemption in Windermere will pay $180 a year in property taxes, compared with the owner of a $100,000 home with an exemption in Edgewood, who will pay $255 a year.

Last year, Windermere collected $424,745 in property taxes. It also issued 21 building permits for new houses during the year ending Sept. 30, 1998. That was double the average number of new house starts, Town Manager Cecilia Bernier said.

``We've had ... more than usual,'' she said. ``It's the economy that's driving it. The money is there, and people are working.''

Still, the town plans to increase spending by just 6 percent, or $77,000.

The money will increase the Windermere Police Department budget by $33,000 and add a part-time parks department worker, among other things.

About 35 percent of the $1.3 million budget will be spent for general operating costs, such as garbage collection, fire protection and employee health insurance.

Another 29 percent - $373,832 - will be spent to operate the Windermere Police Department.

Other spending categories include $165,750 for office expenses, mostly staff salaries; $163,889 for streets and roads; $57,227 for capital expenses; $44,159 for buildings and grounds; and $24,950 for parks and recreation.

On top of its annual budget, Windermere also has a contingency fund of about $42,000 and emergency reserves of $890,000.

A proposed $85,000 budget expenditure for a drainage project in Johnson Park was eliminated during a recent workshop. Town Council members decided instead to seek grant funding for the project, Bernier said.

``There are things you'd like to do, but you have to weigh the options,'' Bernier said. ``Nobody wants to raise taxes.''

The town will have a public hearing on the budget Sept. 13 and vote on the budget Sept. 20. Both meetings will be at 7 p.m. at Town Hall, 520 Main St.